Senate panel seeking more info on tar sands oil

DOVER — A U.S. Senate panel is calling for more information about the risks associated with tar sands oil, which environmentalists worry could begin flowing across New Hampshire.

A $34 billion bill adopted last week by the Senate Appropriations Committee calls for federal transportation officials to determine whether diluted bitumen would be any more destructive to the environment than conventional crude oil if it were to leak from a pipeline.

Diluted bitumen is a blended oil product made from so-called “tar sands,” a naturally-occurring substance that also contains clay, sand and water. It can be processed to extract the bitumen and create a thick crude oil.

The tar sands oil business is booming in western Canada, and petroleum manufacturers are exploring new routes to bring the product to market. One such route is the proposed Keystone XL Pipeline, which would carry the product to the Gulf of Mexico.

Environmentalists say an existing pipeline between Canada and Portland, Maine, could also be used to begin shipping diluted bitumen east. The Portland-Montreal Pipe Line stretches more than 200 miles and cuts through Vermont and northern New Hampshire.

Reversing the flow of material in the pipeline would allow big oil producers to move tar sands oil to the Maine coast, where it could be shipped to refineries or sent overseas.

That prospect has rattled some communities that lie along the pipeline's path, since environmental groups are warning that tar sands oil could cause more harm than conventional oil products if it were released into the environment.

The Senate Appropriations Committee approved a measure last week that seeks to clarify that point. It calls on the administrator of the government's pipeline safety program to determine whether the “spill properties” of diluted bitumen are more harmful than other forms of liquid petroleum.

Congress had earlier charged the government with the responsibility of studying whether diluted bitumen is more corrosive than conventional crude, and more apt to leak.

That question was addressed earlier this month by the National Academy of Sciences, which conducted a study that showed tar sands oil products aren't more likely to cause oil spills. However, the study did not touch on the question of whether spills of diluted bitumen would be more damaging to the environment.

U.S. Sen. Jeanne Shaheen, D-N.H., was among the lawmakers who helped secure new language in the appropriations committee bill calling for further review, according to information provided by her staff this week.

“Protecting our environment and the health and safety of New Hampshire's public has always been a top priority of mine,” she said in a prepared statement. “Conducting a thorough study to examine risks associated with a potential spill is a matter of commonsense.”

One of Canada's largest pipeline operators, Enbridge, Inc., developed a plan in 2008 to reverse one of its existing lines to begin moving tar sands oil east from western Canada. Enbridge's Line 9 would be capable of delivering tar sands oil to Montreal if the company reversed the flow of the entire line. Enbridge proposed doing just that four years ago with it's so-called “Trailbreaker” project.

To move the tar sands oil on the final leg of the journey from Montreal to Maine, the company proposed utilizing the existing Portland-Montreal Pipe Line.

Enbridge officials have since scrapped the Trailbreaker project, citing a sour economy. But environmental groups in both Canada and the United States believe recent actions indicate the company is working to revive the proposal incrementally.

A spokeswoman told Foster's last year the company has no current plans to begin sending oil to Maine, although the future use of its oil transportation infrastructure will be dictated by the demands of shippers.

“It's one of those things where, if the market demand is there, there is the possibility that we would be bringing Canadian oil to those markets,” the spokeswoman said.

In April 2013, Shaheen joined Democratic U.S. Reps. Carol Shea Porter and Annie Kuster in requesting an investigation of the potential impacts of a pipeline reversal. In a letter to Sec. of State John Kerry, the trio asked whether the owner of the Portland-Montreal Pipe Line would be required to receive a presidential permit from the United States in order to proceed with such a plan.

As secretary of state, Kerry would have authority to issue such a permit. A State Department spokesman did not return a call seeking comment on the issue this week.

Democratic Gov. Maggie Hassan also contacted Kerry in April to express her concern. Hassan called on the federal government to conduct an environmental review and permitting process before allowing any existing pipelines in New Hampshire to transport tar sands oil.

“I am writing to ask you to act to protect New Hampshire's economy and environment,” Hassan wrote on April 22. “The State of New Hampshire has limited authority over pipelines that cross state borders and therefore relies heavily on federal review and regulation. It also receives little or no benefit from their presence in the state. However, should anything go wrong with such a pipeline — a leak or worse — New Hampshire's taxpayers bear the responsibility and cost of cleanup.”

Vermont Gov. Peter Shumlin expressed similar sentiments earlier this year. According to The Associated Press, Shumlin asked Kerry to conduct a federal environmental review of any proposal to reverse the flow. Residents in at least six towns in Maine have also passed resolutions opposing the transportation of tar sands oil through the pipeline, the AP reported.

The Senate committee's move was welcomed as a positive development by the Natural Resources Defense Council, which has been sounding the alarm about potential tar sands hazards. NRDC attorney Anthony Swift said pipeline safety has historically been an area of bipartisan concern.

“I think this is a very positive step, and it moves to address a major gap in our spill response and preparedness regime,” he said.